District backs out of deal involving Metrobuses

WASHINGTON -- Can't Metro and the D.C. government get along when it comes to the ballpark? Another issue is coming to a head between the two sides, and money is again the central issue.

You might remember a recent dispute about paying for late night rail service if a Nationals game went long. D.C. Department of Transportation Director Gabe Klein informed Metro General Manager John Catoe the city would no longer be covering those costs. After apparently speaking out of turn, Klein rescinded that statement, saying the city would in fact continue to pay the costs of late night rail service.

Now, another issue, this one regarding the sale of Metro property just a block from the ballpark.

Metro agreed to sell its Southeastern bus garage in the fall 2007. The D.C. government said it would cover the cost to move all the Metrobuses out of that garage and operate them from other facilities around the region. Those costs are known as "deadheading costs." In exchange, the former Metrobus site would be re-developed freely. The cost to the city: $400,000 a month.

But in a letter sent in February from DDOT to Metro, Klein states: "This letter is to formally notify you that the District is not able to continue funding the costs of the reallocation of buses from the former Southeastern Bus Garage (the so-called 'deadheading costs') Therefore, the District's January payment will be its last payment to WMATA for deadheading costs."

That means since February, D.C. has racked up a tab of $1.2 million in unpaid expenses to Metro, and the clock continues to tick.

"You can't make unilateral decisions like that," says Metro board member Peter Benjamin, who chairs Metro's Finance, Administration and Oversight Committee. "It is important once you make a commitment to stick to it."

As a way to make up the missed payments, D.C. leaders now say they will take out the difference from the sale of a future real estate deal between the city and Metro. That deal is expected to be the sale of D.C. Village, a former homeless shelter in Ward 8 which will be turned into a new Metrobus facility. However, that sale has not been completed.

"Hopefully we can get this taken care of very soon," Metro board member and D.C. Council member Jim Graham tells WTOP.

Meanwhile, the city continues to take on $400,000 in debt every month to Metro.

"If the deal doesn't go through, then we have a problem. For now, I'll hold my breath and see what happens," says Benjamin.

(Copyright 2009 by WTOP. All Rights Reserved.)